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U.S. Navy Awards $52 Million Contract to DD 21 Blue Team Led by General Dynamics

FALLS CHURCH, Va. – The U.S. Navy has announced a $124 million contract modification for continuation of design and test planning of its 21st century DD 21 destroyer program. The contract was awarded to the DD 21 Alliance, which includes Bath Iron Works of Bath, Maine, a subsidiary of General Dynamics (NYSE: GD); and Ingalls Shipbuilding of Pascagoula, Miss.

Bath Iron Works is leading the DD 21 Blue Team, which includes Lockheed Martin Government Electronic Systems, Moorestown, N.J., and will receive $52 million for the continuation of its work associated with Phase II of this program.

John K. Welch, group executive for Marine Systems at General Dynamics, said, "The DD 21 program comprises leap-ahead technologies that will benefit every Navy sailor and future ship at sea. The Navy’s continued funding of critical-technology development will pay dividends for decades to come throughout the surface combatant fleet."

The Blue Team has previously announced some of the strengths of its proposed DD 21 destroyer, which include:

* A 42 percent reduction in the total ownership cost (compared to the cost of current destroyers);

* A significantly reduced crew size (fewer than 95) and improvements to the quality of life aboardship for crew members;

* A totally integrated, shipwide Command & Control architecture that provided "plug & fight" capability and cost-effective scaleability to meet new mission requirements;

* Electric drive with external propulsion systems, providing a more survivable and mobile platform with increased payload capacity at significantly reduced total ownership costs;

* A damage-tolerant design, which includes zonal distribution and redundancy of power supply, ensuring that the loss of no single space will cripple the ship;

* Dramatically improved stealth characteristics, with a tumblehome hull and integrated topside design; and

* A highly automated bridge and advanced Mission Control Center (MCC), which will control the entire ship and replace today’s CIC, Sonar Control, Engineering Control Center, and Damage Control Central.

Bath Iron Works of Bath, Maine, a leader in surface combatant design and construction, employs 7,000 people. It is a subsidiary of General Dynamics (NYSE: GD), headquartered in Falls Church, Virginia. General Dynamics employs approximately 47,000 people and anticipates 2001 sales of approximately $11.5 billion. The company has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation.

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Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Friday, June 15, 2001
Press Contact: (207) 442-1149



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